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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Sterling continues to decline amid political uncertainty in UK

GBP/USD is expected to move lower today, along with EUR/USD and AUD/USD, in a continuation of the wider trends of recent weeks.

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EUR/USD continue to decline after rally into deep retracement

EUR/USD has been declining after a deep retracement into trendline and the 200-simple moving average (SMA) resistance. The wider downtrend remains in play and points towards a likely move back into the lows around $1.1111.

With the pair oversold, there is a chance of a rebound, yet further downside does look likely as the pair continues the bearish pattern. A break through $1.1264 would be required to negate the wider downtrend.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD continues to decline after recent rebound

GBP/USD has experienced a consistent phase of losses over the course of the month, with that selling pressure continuing this week. Bearing last week’s rebound in mind, this current move looks like a return to that bearish theme.

Given that such a move below $1.2605 would confirm the break below the 76.4% retracement at $1.2659, it would also provide a clue that the pair could ultimately head back towards the long-term low of $1.2435. A rise through $1.2748 would be required to negate the bearish trend that is currently in play.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD turning lower following recent rebound

AUD/USD managed to muster a rebound into the crucial $0.6934 swing-high last week, with that level of resistance continuing to play out during recent trading days.

With the price turning lower this morning, there is a good chance the sellers will gain prominence as the day continues. Watch for an hourly close below the $0.6912 level to signal a likely bearish phase coming into play. Only with a break through the $0.6934 peak would we see a more bullish picture form.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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